Credit Experts in here

[paul_376]

Keep them open

[Big A]

It would be advantageous to close one or both of the smaller cards only if they were acquired fairly recently, which would then increase your credit's overall age. Otherwise let 'em sit.

[8mpg]

average account life uses active and inactive accounts, calculated from the account's opening date, right? Then it wouldn't impact it

Its the total average life.

Account 1: 12 months
Account 2: 36 months

48months / 2cards = 24month average. Closing cards just means a greater denominator. Some people have cards open 20 years and some open and closed in a month. THat one month card will kill the average.

[Big A]

Its the total average life.

Account 1: 12 months
Account 2: 36 months

48months / 2cards = 24month average. Closing cards just means a greater denominator. Some people have cards open 20 years and some open and closed in a month. THat one month card will kill the average.

So even a closed card gets factored into the average? I thought only open trade lines are factored in.

[Nash B.]

Its the total average life.

Account 1: 12 months
Account 2: 36 months

48months / 2cards = 24month average. Closing cards just means a greater denominator. Some people have cards open 20 years and some open and closed in a month. THat one month card will kill the average.

Closing cards changes the numerator, too.

Most of the information I've found says that it includes closed accounts as well as open, and everything I've seen says it uses the date the account was opened to compute its age rather than how long the account was/has been open (which only differs in the case of closed accounts).

Scenario 1: the calculation includes closed accounts.
Closing the unused accounts won't impact average age of accounts, but it will lower your available credit and credit:debt ratio.

Scenario 2: the calculation only uses open accounts.
2a. The smaller accounts are younger than your average age of accounts.
Closing the newer accounts will increase your average age of accounts.

2b. The smaller accounts are the same age as your average account age.
Closing them will have no impact on average age of accounts.

2c. The smaller accounts are older than your average age of accounts.
Closing them will decrease your average age of accounts.

[8mpg]

From tracking my own credit, closing a newish account (less than a year old) has brought down my average life of credit. I did a lot of credit card churning for airline miles and points and saw it hit me. My average life went from say 7 years down to 3-4.

[Nash B.]

Are you sure that wasn't the initial hit from opening the account?

[8mpg]

Are you sure that wasn't the initial hit from opening the account?

Credit Karma and what not always says my average credit life is short. I could be wrong, could be coincidental. Im seeing drops when I close an account. It could be the credit availability dropping as well

[Barbie]

Barbie has excellent credit.

Still true! Thanks for remembering!